U.S.-China Trade Tensions: Impact on Property Markets

Rebecca Rockey

The U.S. and Chinese economies and property markets are powering through the current trade tensions and are performing well. Despite a few imposed tariffs and a flurry of trade threats this year, China’s economy hasn’t skipped a beat. In the first quarter of 2018, China’s real GDP grew by 6.8%, on par with last year’s robust pace.

Most of the tariff proposals have not yet gone into effect. So far, a lot of bluster—not a lot of action.

To date, the trade issue has largely been a non-factor in terms of any impact on property markets and capital flows.

China and the U.S. continue to negotiate. Progress is being made but the situation remains very fluid.

Major disagreements remain, particularly regarding the “Made in China 2025” development strategy and intellectual property and technology transfers.

Given the strong economic ties between China and the U.S., the probability of a full-blown trade war is very low.